Credit Card and Debit Card

Debit cards and credit cards are accepted at the same places. Debit cards all carry the 

symbol of one of the major types of credit cards on them, and can be used anywhere that 

credit cards are accepted. They both offer convenience. The fundamental difference

between a debit card and a credit card account is where the cards pull the money. A debit 

card takes it from you banking account and a credit card charges it to your line of credit.


Debit cards offer the convenience of a credit but work in a different way. Debit cards draw 

money directly from your checking account when you make the purchase. They do this by 

placing a hold on the amount of the purchase. Then the merchant sends in

the transaction to their bank and it is transferred to the merchants account.

It can take a few days for this to happen, and the hold may drop off before the transaction 

goes through.

For this reason it is important to keep a running balance of your checking 

account to make sure you do not accidentally overdraw your account.

It is possible to do that with a debit card.

A credit card is a card that allows you to borrow money in small amounts

at local merchants. You use the card to make your basic transactions. The credit card 

company then charges you interest on your purchases, though there is generally a grace 

period of approximately thirty days before interest is charged if you do not carry your 

balance over from month to month.

 
In the past many people felt that you needed a credit card to complete certain transactions 

such as rent a car or to purchase items online. They also felt that it was safer and easier to 

travel with a credit card rather than carrying cash or trying to use your checkbook. However 

debit cards offer the same convenience without making you borrow the money to complete 

the transactions